Study accuses Amazon, Walmart of deceiving shoppers with false 'Made in USA' claims
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A new study reveals that artificial intelligence shopping assistants used by Amazon and Walmart can identify many falsely labeled "Made in USA" products sold on their platforms, but the companies are not deploying that capability to systematically crack down on misleading listings.
The study was published Thursday by the Columbia Law School's Center for Law and the Economy.
Amazon, Walmart accused of having false ‘Made in USA’ claims
Big picture view:
Researchers examined Amazon's Alexa for Shopping and Walmart's Sparky, testing whether the AI assistants could detect discrepancies between product listings that explicitly claimed items were "Made in USA" and other information indicating the products were imported or manufactured abroad.
The study found that both chatbots were generally capable of identifying inconsistencies, demonstrating that Amazon and Walmart possess the technical ability to flag potentially deceptive country-of-origin claims. However, the researchers concluded that the companies have not broadly applied those capabilities to listings across their marketplaces.
AI shopping assistants can often detect when "Made in USA" product labels are falsely labeled, but Amazon and Walmart are not using that technology to crack down on the listings, according to a new study. (Credit: Getty Images)
The center, led by former U.S. Federal Trade Commission Chair Lina Khan, found that the limitations were driven less by technical constraints than by business incentives, raising questions about how retailers are deploying AI tools designed to help consumers shop.
The report also found that misleading "Made in USA" claims appear to be common on both platforms.
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In addition, the study said Alexa blocked certain questions involving "Made in USA" products while allowing similar queries about products identified as "Made in China." According to the report, Alexa responded that the difference reflected a company decision intended to protect its overseas seller base.
What they're saying:
Walmart did not immediately respond to a request for comment.
Amazon told FOX Local it is continuing to improve how its AI shopping assistants provide information to customers, but notes that the suggestion of intentionally withholding country-of-origin information is false.
"We strive to provide customers with detailed information about products in our store, including where they are made when that information is provided to us by manufacturers or third-party sellers. The suggestion that we intentionally withhold country-of-origin information from customers is incorrect," an Amazon spokesperson said in a statement. "Country-of-origin information, when available, is currently displayed on product detail pages, and we’re continually working to improve Alexa for Shopping’s ability to accurately provide this information to make it even more accessible for customers."
The company added that it takes action when sellers violate its marketplace policies. The company also maintains that the report’s broader conclusions about Amazon’s use of AI in shopping are misguided.
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The findings revive broader debates over AI-powered shopping assistants, which retailers increasingly view as tools to personalize recommendations and boost consumer spending. The report argued that as these systems become more sophisticated, their deployment may continue to reflect commercial incentives, highlighting a role for policymakers and regulators.
FTC rules require products advertised as "Made in USA" to be "all or virtually all" made in the United States.
Last year, the FTC urged Walmart and Amazon to crack down on third-party sellers' "Made in USA" claims, citing company policies requiring sellers to provide accurate information.
The Source: The information for this story was provided by the study titled: Made in America, Hidden by AI: AI Shopping Chatbots Reveal How Amazon and Walmart Hurt American Manufacturers and Deceive Shoppers. This story was reported from Los Angeles. Reuters contributed.